The Irish tech giants will spend a combined €3 billion to acquire Avalanche Software and the rest will go to the company’s new Ireland unit in 2018, The Irish News can reveal.
The acquisition of Avalanche Software, a software development company, is expected to be announced by the end of the year.
In December, Microsoft confirmed that it would be bringing its technology and talent to Ireland in 2018.
The deal will also involve the creation of an Ireland-based company that will provide technical support to Microsoft in the region, which will be part of Microsoft’s strategy to build out its presence in Ireland.
Microsoft Ireland is to be based in Dublin and its CEO will be Michael Murphy, the company confirmed.
In addition to the deal, Microsoft has already agreed to spend €1 billion to develop the new software suite and build a new digital hub in Dublin.
The purchase of Avalanche and the acquisition of Microsoft Ireland will also see the company invest in Ireland’s digital media industry.
In January, Microsoft announced plans to invest €3.2 billion in the digital media and content business in 2018 with a view to doubling that figure in 2020.
The company has already announced plans for the creation and expansion of new digital media hubs across the country.
The sale of Avalanche will provide further support for the company in its digital media efforts and will also help to strengthen its position in the Irish market.
Microsoft will continue to grow its digital operations in Ireland, as it continues to invest heavily in the country, which has the third largest online population in the world.